Advance Budgeting and Cost Management

Course outlines:

Module One: 

Introduction: The Relevance of Budgeting and Cost Management within Strategy Execution  

• The Link between Strategy, Planning, Budgeting and Cost Management
• Why Budgeting and Costing are so important to manage your company?
• Towards a Cross-functional Process-view of the Organization
• Financial vs. Managerial Accounting (where you get information for decision-making)
• Understand your Processes: Integrating Financial and Non-financial Aspects
• Identify and Discuss the Key issues in terms of Budget / Costing for your own Organization
• Discussion

Module Two: 

The Budgeting Framework and its Role within the Management Process  

• The Role of Budgeting within Management Accounting
• The Value of Budgeting in your Company
• Behavioral Implications of Budgeting
• Key Concepts and Terminology
• Advantages and Disadvantages: Critical issues to be Discussed
• Overview on the Financial Statements – Balance sheet, Income statement and Cash-Flow
• Case Discussion and Examples

Module Three:

Cost Management for Budgeting Purposes  

• Cost Concepts and Terminology
• Different Costs for Different Purposes
• Fixed vs. Variable Costs: The Cost-Volume-Profit Analysis Model
• Contribution Margin Analysis
• Manufacturing vs. Non-manufacturing Costs
• Period vs. Product Costs: Inventory Evaluation and Control
• Case Study and Discussions

Module Four:

Case Study Day – Traditional vs. Advanced Techniques in Cost-control  

• Under-costing and Over-costing: The Consequences for Profitability
• How to refine a Costing System?
• Indirect vs. Direct costs: Traditional Cost Allocations Systems vs. Activity-Based Costing
• Cost Drivers: Linking Resources, Activities and Management
• Introducing Activity-Based Budgeting (ABB) and Management (ABM)
• Case Study Analysis
• Examples and Videos

Module Five:

Broadening the Performance Measurement Systems  

• Shortcomings of Traditional Approaches to Budgeting and Performance Measurement
• Need to Link Financial to Operational Issues
• Recent Best Practices: The Balanced Scorecard and Six-sigma
• Financial Perspective and Customer Perspective
• Internal Business Process Perspective and Learning & Growth Perspective
• Developing and Adapting the Scorecard
• Video, Case Study Illustration and Discussion